H M Bangur, managing director, says, in recent years, he has been emphasising on setting up clinker grinding units at locations close to major consumption centres. "These help in serving customers more efficiently and are (more) cost-effective and environmentally friendly," he said.
The company first entered the eastern market in 2007 when it signed an agreement with the Chhattisgarh government to set up clinkerisation units. It marked the company's first foray outside its traditional base in Rajasthan, where it has five units.
Thereafter, Bangur, who now claims to have the second highest market share in Chhattisgarh, went ahead with expansion in Bihar, where it now has the largest share. Jharkhand and Bengal that were missing in its coverage of north and east will now be filled by sourcing limestone from Chhattisgarh.
In 2015-16, it added a two mtpa grinding unit at Bulandshahr in Uttar Pradesh.
The southern region will be a new area. "Market dynamics are different in the south and the north," says an analyst with Motilal Oswal. Karnataka, where operations are likely to commence in 2018, will mark Shree's first foray into south India.
Bangur is aiming for 40 mtpa capacity in the coming five years from its existing 25.6 mtpa. According to its 2015-16 report, it was the market leader in Rajasthan, Haryana, Delhi and Bihar, and number two in Chhattisgarh.